CBSE 2025, Set 1, Q34

Question

'Royal Glaze Ltd.' continues to maintain its position as one of the largest consumer goods companies in the world. Its organisational structure is designed to facilitate the achievement of its objectives in alignment with its vision statement. The company maintains two distinct product divisions in its organisational structure - 'Foods' and 'Home Care'. Looking ahead, the company is focusing on embracing changes so that it can continue to be the market leader. As part of its expansion plans, it is planning to venture into the electronics segment in the near future.
(i) Identify the organisational structure of 'Royal Glaze Ltd'.
(ii) Draw the organisational structure chart of 'Royal Glaze Ltd.' considering its future plans to enter into Electronics segment.
(iii) State any three advantages of the type of organisational structure drawn in (ii) above.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Organisational Structure:** Divisional Structure (since they organize around distinct product divisions like Foods and Home Care).

**(ii) Organisational Structure Chart:**
*(Student should draw a hierarchical chart with Managing Director/CEO at the top, branching out into three divisions: Foods, Home Care, and Electronics. Under each division, standard functions like Production, Marketing, Finance, and HR can be shown.)*

**(iii) Advantages of Divisional Structure (Any three):**
1. **Product Specialization:** Helps managers develop varied skills related to a specific product line, preparing them for higher roles.
2. **Fixation of Responsibility:** Each division acts as a profit center. Accountability for revenues and costs is clear, making performance measurement easy.
3. **Flexibility and Faster Decision-Making:** Each division operates somewhat autonomously, enabling quicker responses to market changes without interrupting other divisions.
4. **Expansion and Growth:** New product lines (like Electronics) can easily be added without disrupting the operations of existing divisions.

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Business Studies > Principles And Functions Of Management > Organising

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